SBN HOLDINGS LIMITED Annual Report 2022
lances
OUR PERFORMANCE
22
"2022 has been a year of renewed recovery for the group
with strong growth in profit after tax of over 70%. SBN Holdings
also successfully raised N$400 million in its debut green bond
issuance, enabling the group to accelerate its progress
in transitioning to a low carbon economy."
Financial
review
Net interest income
N$m
1600
1400
1200--
1000--
800
600
400
200
0
2017 2018 2019
1236 1220 1333
2020 2021 2022
1169 1229 1445
Non-interest revenue
N$m
1400
1200
1000
800--
600
400
200
0
2017
957
2018
1126 1263
2019 2020 2021
1193 1209
2022
1283
Letitea du Plessis Chief financial officer
Impairment charges
N$m
350
280
Net loans and advances
210
N$m
140-
70--
23 000
22 000
21 000
20 000
2017
2018
2019
2020*
2021*
2022
22 146
23 475 25 476
24 091
25 382 25 969
%
1,20
1,00
0,80
0,60
0,40
0,20
0
0,00
2017
2018
2019
2020
2021 2022
97
96
239
254
289
161
--
0.44
0.40
0.91.
1.02
1.09
0.60
Impairments
--Credit loss ratio (CLR)
Standard Bank
↑ 2.3%
Average interest
earning assets
27 000
26 000
25.000
24 000
WELCOME
Standard
WHATEVER YOUR DREAM
Deposits from customers and banks
N$m
29 000
↓ 3.2%
28 000
27 000
26 000
الياس
22 000
2017
2018
2019 2020*
24 567 25 637 27 867
2021*
2022
26 134 28 256 27 353
Average interest
earning liabilities
25 000
24 000 --
23 000 --
4.4%
Net interest margin
(2021: 3.9%)
Trading assets, pledged assets and
financial investments
N$m
7000
6000
5 000
4000
3 000
2000--
1000 --
о
2017
2018
2019
2020
2021
2022
3 826
4 586
4 912
5 238 6290
5 398
*
The 2020 and 2021 figures were restated. Refer to the restatements in the accounting policy election and restatements section of the annual financial statements for more detail.
Operating expenses
N$m
%
1800
66
1600
64
1400
62
1200--
1000--
60
800--
58
600
56
400--
54
200
0
52
2017
1312
--
60
2018 2019 2020
1452 1488 1498
62
57
2021
2022
1587
63
65
1679
62
Operating expenses
-Cost to income ratio
Profit for the year
N$m
700
600
500--
400
300
200
100
0
2017
546
2018
552
2019 2020 2021 2022
613
421
364
624
SBN HOLDINGS LIMITED
Annual report 2022
Net interest income (NII) increased by 17.5% to N$1 445 million,
predominantly due to the steady 300 basis point (bps) increase in the repo
rate from 3.75% to 6.75% since 1 January 2022 and ongoing improvement
in the net interest margin, up from 3.9% to 4.4%.
Interest income was up 22.4%, driven by the increase in interest rates and
focused growth in loans and advances in CIB. Interest expense increased by
30.6%, due to the additional N$400 million green bond issuance as well as
the ongoing focused approach to shifting the composition of our deposits
and advances book to attract more term and notice deposits.
23
Non-interest revenue (NIR) increased by 6.1% to N$1 283 million, driven by
31.8% growth in trading revenue due to increased client flows and volatility in
currency markets. In addition, other revenue was up 37.1% from N$106 million to
N$146 million supported by N$23 million growth in bancassurance revenue,
as well as an additional N$26 million in property-related revenue from the
acquisition of the Spearmint property portfolio.
Credit impairments decreased by 44.2% year on year, primarily due to the
ongoing implementation of our 2021 non-performing loan reduction strategy
and the achievement of related strategic initiatives. As a result, our credit loss
ratio (CLR) reduced by 49bps from 1.09% to 0.60%. This will continue to be
a focus area for the group.
Operating expenses increased by 5.8% to N$1.7 billion, below the
average annual inflation of 6.1%.
Staff costs decreased by 3.1%, mainly due to the non-repeat of expenses relating
to the voluntary separation package taken by qualifying employees in 2021.
Other operating expenses increased by 15.8%, driven by increases in IT
expenses, professional fees and amortisation costs to support client growth
strategies. The increase also relates to additional activity as employees return to
the office, finalisation of service level agreements with the Standard Bank Group
for intra-group service management costs, as well as the inclusion of expenses
relating to the new property portfolio.
The group ensures that there is ongoing robust management and monitoring
of the cost containment measures in place to meet its cost-to-income target
of below 60%.
Return on equity
II
%
20.0
18.0
16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0 --
0.0
2017
2018
18.6
17.8
2019
17.3
2020 2021 2022
10.2
8.6 13.7
Profit for the year increased by 70.5%, up from N$366 million
to N$624 million, driven by the increase in repo rate and
improvement of our collection strategy to reduce our credit
impairment charges.
The ROE improved from 8.6% to 13.7%. The group
is well-positioned to achieve its ROE target of a
minimum of 15% by 2025.View entire presentation